Secure ₹5 Crore for Retirement with Ideal SIP

Many seek guidance on building a ₹5 crore retirement fund. Financial experts emphasize the crucial need to start saving early in your career for favorable investment returns. A year’s delay in retirement planning significantly impacts the corpus, highlighting the importance of early initiation to leverage the power of compounding.

1. Ideal SIP for ₹5 Crore if You’re in Your 20s

“Transforming the ₹5 crore dream into reality is practical through early and consistent SIPs, letting compounding work its magic. Initiating SIPs in your 20s with ₹8,000 per month in quality equity funds delivering 12% CAGR can make you a crorepati by 45 and amass ₹5 crore by 60,” states Ashish Aggarwal, Director, Acube Ventures.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

2. Ideal SIP for ₹5 Crore if You’re in Your 30s

Starting in your 30s requires a higher monthly SIP of about ₹21,000 for the same impact. Extending investment horizons beyond 25 years, careful fund selection, and increasing contributions during earnings peaks are key. Making every rupee work hard from a young age achieves financial freedom and surpasses inflation by a considerable margin, emphasizes Ashish Aggarwal.

3. Ideal SIP for ₹5 Crore if You’re 35 Years Old

As per the Upstox SIP calculator, a 35-year-old needs to invest ₹27,000 per month for the next 25 years to build a ₹5 crore corpus by 60, assuming a 12% annual rate of return and monthly compounding. The invested amount of ₹81 lakh will grow to ₹5 crore 12 lakh 36 thousand 147.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

4. Ideal SIP for ₹5 Crore if You’re 40 Years Old

For a 40-year-old aiming for ₹5 crore by 60, the Upstox SIP calculator suggests investing ₹33,000 per month for the next 20 years. Assuming a 15% annual return and monthly compounding, the invested amount of ₹79.2 lakh will grow to ₹5 crore 26 thousand 514.

To enhance retirement planning, diversify your investment portfolio, considering factors like risk tolerance, investment horizon, and financial goals. Regularly monitor investment performance, making necessary adjustments to stay aligned with objectives.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

Disclaimer: The views and recommendations made above are those of individual analysts, and not of TheNewsay. We advise investors to check with certified experts before taking any investment decisions.

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Relief for Small Tax Demands Cleared: Income Tax 2024

How to Check Your Status?

To verify if your tax demand has been waived, follow these steps:

A. Visit: pending action > response to outstanding demand.

B. Look for the status of ‘extinguished demands’ in your case.

C. For queries, call 1800-309-0130.

D. Email your concerns to taxdemand@cpc.incometax.gov.in.

Also Read: Relief for Small Tax Demands Cleared

Withdrawal of Tax Demands

The government proposed to withdraw outstanding direct tax demands dating back years, causing anxiety to honest taxpayers.

“There are disputed tax demands some of them dating back to 1962 causing anxiety to the honest tax payers, so I propose to withdraw such outstanding direct tax demand up to ₹25,000 pertaining to the period up to FY 2009-10 and up to ₹10,000 up to 2010-11 to 2014-15,” said Sitharaman in the Budget speech. This is expected to benefit one crore tax payers, she added

In another development, Life Insurance Corporation of India announced receiving refund orders totaling ₹21,740.77 crore from the Income Tax Department for Assessment Years 2012-13 to 2019-20.

Also Read: Relief for Small Tax Demands Cleared

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These steps, along with advanced encryption, authentication technologies, second channel notifications, and risk-based transaction monitoring, aim to foster a secure and reliable digital payments ecosystem.

RBI uses various channels like digital, print, and audio-visual media through the “RBI Kehta Hai” program to create customer awareness. The central bank issues master directions on digital payment security controls to banks and regulated entities to safeguard customer data confidentiality and integrity.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

Shikhar Aggarwal, Chairman of BLS E-Services, advises users not to share sensitive information like card details, passwords, PINs, OTPs, CVVs, UPI-PIN, and to avoid financial transactions on public Wi-Fi networks. Additionally, users are urged not to store crucial banking data on their mobiles, emails, electronic wallets, or purses.

RBI Takes 8 Steps for Secure Digital Payments: List

1. Specific OTPs required from a secondary channel for adding new payees.
2. New OTPs mandated for high-value transactions.
3. Managed time limits for OTPs to minimize misuse.
4. Use of digital signatures and Key-based Message Authentication Codes (KMAC) to prevent unauthorized transactions.
5. Customer education on rights, responsibilities, and risks under the Consumer Protection Act and internet banking.
6. Alternate notification method for transactions exceeding a specified value.
7. Guidance on responding to SSL or EV-SSL certificate alerts to prevent phishing.
8. Implementation of systems to assess transaction patterns and highlight unusual activities, ensuring alignment with customer behavior.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

Disclaimer: The views and recommendations made above are those of individual analysts, and not of TheNewsay. We advise investors to check with certified experts before taking any investment decisions..

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7 Valuable Lessons from Farming Practices: Investing Insights

1. Keep Calm with Your Investments

Patience is key in both farming and investing. Farmers don’t yell at their crops; likewise, investors should avoid impulsive decisions driven by frustration or fear. Focus on long-term goals amid market fluctuations.

2. Growth Takes Time

Investments, like crops, need time to grow. Understand the compounding power, allowing returns to snowball with time. Early investments enable compounding over an extended period, transforming modest gains into substantial wealth.

3. Avoid Premature Actions

Just as crops vary in growth rates, investments also differ. Don’t hastily redeem investments due to impatience. Strategic planning, like farmers choosing crops, is crucial. Consider advantages and disadvantages before engaging in new investments.

Also Read: 7 Valuable Lessons from Farming Practices

4. Choose Wisely

Selecting the right investments is akin to farmers choosing suitable plants. Understand financial terms, conduct thorough research, and base decisions on equities, debt, and financial goals rather than hearsay.

5. Nurturing Investments

Cultivate investments like farmers nurture crops. Stay vigilant, recognize market downturns, and use opportunities to accumulate quality stocks or units in high-yield mutual funds.

6. Eliminate Non-Performers

Removing weeds in farming is like getting rid of underperforming investments. Proactively eliminate undesirable elements, strategically timing actions to optimize returns. Regular assessment ensures enduring financial success.

7. Prepare for Ups and Downs

Similar to farmers preparing for diverse weather conditions, diversify your investments across asset classes and sectors. Create a “rainy day” fund for unforeseen expenses without selling investments during market downturns. Stay informed but avoid fixating on daily fluctuations. Be ready to adapt strategies based on significant changes or economic indicators.

Also Read: 7 Valuable Lessons from Farming Practices

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Nvidia Hits USD 2 Trillion Market Value in AI Driven

The significant milestone followed a robust revenue forecast, leading to a record-breaking $277 billion increase in market value on Thursday, the largest single-day gain on Wall Street.

Nvidia’s remarkable growth in the past year draws comparisons to the suppliers of tools during the 1800s gold rush, as its chips are utilized by major generative AI players like OpenAI and Google.

Also Read: Nvidia Hits USD 2 Trillion Market Value in AI Driven

Surging from $1 trillion to $2 trillion in market value in just around nine months, Nvidia achieved this feat faster than any other US company and in less than half the time it took tech giants Apple and Microsoft.

“For AI companies today – the leaders of the sector – what’s going to be binding for them is not going to be demand. It’s just going to be their capacity to answer the surging demand,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

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Inflation vigilance is crucial said Das warns on MPC 2024

Among the six members, five voted to maintain the repo rate at 6.5%, keeping the policy stance unchanged. However, member Jayanth Varma advocated for a 25% reduction in the repo rate and a shift to a neutral stance.

“We must remain committed to successfully navigating the ‘last mile’ of disinflation which can be sticky. As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far,” he wrote in the minutes.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Food price uncertainty remains a major source of volatility for headline inflation outlook. Growing geo-political tensions and supply chain disruptions due to new flash points also pose further risks to the inflation outlook,” Das wrote.

The policy imperative at the current juncture, wrote Das, is to remain focused on achieving the 4 per cent inflation target on a durable basis, keeping in mind the objective of growth, he wrote.

Das expressed optimism that the current monetary policy is progressing well, with steady growth and inflation moving towards the target. Despite a rise in headline inflation to 5.1% in January, above the RBI’s 4% target, Das outlined expectations of a softening trend to an average of 4.5% in 2024-25.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Monetary policy must remain restrictive and maintain downward pressure on inflation while minimising the output costs of disinflation. It is only when inflation subsides and stays close to the target lastingly that policy restraint can be eased,” Patra wrote.

Deputy Governor Michael Patra highlighted persistent food supply pressures hindering disinflation, while external member Varma projected an average inflation of 4.5% in 2024-25. MPC member Ashima Goyal suggested that commodity price shocks might be short-lived, and the expected rise in food prices remains uncertain.

“I do not believe that such a high real rate is required at this stage to drive inflation down to the target of 4 per cent. It is true that economic growth is holding up well, but there is no evidence at all that the economy is overheating,” Varma wrote.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Then it would not be necessary to keep rates high just because supply shocks are expected in the future. But we can wait to test this for some more time. So, I vote for status quo on rates though headline inflation FY25 projections of 4.5 per cent gives room to cut,” she wrote.

“Avoiding any premature move will help us guard against the biggest challenge to credibility, i.e., having to backpedal later if faced with upside surprises to inflation,” Ranjan wrote.

MPC member Rajiv Ranjan acknowledged the challenges in managing the final phase of inflation’s descent, noting historical tendencies for inflation shocks to persist. External member Shashanka Bhide emphasized the need to focus on achieving the inflation target consistently, given the current elevated food inflation levels and strong overall economic growth.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

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Japan Drops to Fourth-Largest Economy Amid Recession

The report highlighted a decrease in spending by both households and businesses for the third consecutive quarter. The downturn challenges predictions about the Bank of Japan (BOJ) ending its negative interest rate policy soon. Analysts had anticipated a 1.1% growth, but the actual result was weaker than expected.

Also Read: Japan Drops to Fourth-Largest Economy Amid Recession

The surprise contraction complicates the BOJ’s plan for a rate hike, which many economists predicted would happen by April. The market’s reaction showed a decrease in the likelihood of a BOJ rate hike by April, dropping from 73% to around 63% after the results.

Takeshi Minami, an economist at Norinchukin Research, noted that the unexpected contraction poses challenges for the BOJ, affecting its plans to end the negative rate policy. Despite recent discussions about a possible policy shift, the BOJ had aimed to reassure markets that a rate hike wouldn’t signal a drastic change.

The contraction in GDP for the fourth quarter signals a technical recession for Japan, raising doubts about the BOJ’s quick departure from its current policy stance. The data emphasized Japan’s reliance on external demand as domestic demand weakened amid persistent inflation.

Also Read: Japan Drops to Fourth-Largest Economy Amid Recession

Factors contributing to the economic downturn include a 0.2% retreat in private consumption, with households tightening budgets due to rising living costs. Household spending also fell by 2.5% in December compared to the previous year. Business spending was sluggish, decreasing by 0.1% in the last quarter.

Analysts noted that sticky inflation is impacting consumers’ purchasing power, resulting in weak consumption, resembling mild stagflation. Atsushi Takeda, chief economist at Itochu Research Institute, expressed shock at the results and suggested that the possibility of a BOJ rate hike in March is now virtually eliminated.

The weakening yen, reaching levels not seen since November, could contribute to inflationary pressure in the coming months. Despite these challenges, net exports contributed 0.2 percentage points to growth, driven by increased exports in December. Looking ahead, external demand may face challenges in supporting growth in 2024 as Japan’s key trading partners are expected to experience a slowdown in economic recovery.

Also Read: Japan Drops to Fourth-Largest Economy Amid Recession

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HDFC Bank Hit 52-Week Low 9 Percent Stake in 6 Banks

The day started with HDFC Bank shares opening at ₹1380, lower than the previous day’s close at ₹1,394. The company’s market capitalization is ₹10.39 lakh crore, making it the third most valued company after Reliance Industries and Tata Consultancy Services.

Following negative global cues and higher-than-expected inflation numbers in the US, the Bombay Stock Exchange benchmark Sensex dropped more than 675 points. At 1:34 pm, the BSE index was in the red at 71,206.

To HDFC Bank Hit 52-Week Low 9 Percent Stake in 6 Banks, Last week, HDFC Bank announced regulatory approval from the Reserve Bank of India (RBI) to acquire up to a 9.5 percent stake in six lenders, including ICICI Bank and Axis Bank.

Entities within the HDFC Bank Group include HDFC Mutual Fund, HDFC Life Insurance Company, HDFC ERGO General Insurance Company, and others. more about HDFC Bank Hit 52-Week Low 9 Percent Stake in 6 Banks.

In the previous month, HDFC Bank reported a 2.65 percent rise in consolidated net profit, reaching ₹17,258 crore for the October-December period. This is compared to ₹16,811 crore in the preceding September quarter. The bank, which merged mortgage lender parent HDFC into itself in July, reported a standalone net profit of ₹16,372 crore against ₹15,976 crore in the quarter-ago period. Core net interest income grew to ₹28,470 crore, and other income stood at ₹11,140 crore during the quarter.

(Source: PTI)

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ITR Filing Income Tax Return Forms for FY 2023-24

I. Increased Scrutiny on Deductions

The Income Tax Department has tightened regulations on tax deductions. Taxpayers now need to provide more details on various aspects, including political party donations, disabled dependents, and high-value life insurance policies. This aims to prevent false claims and ensure accurate deductions under Section 80GGC.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

II. Political Party Donations under the Scanner

Donations to political parties under Section 80GGC require a detailed breakdown. Taxpayers must now specify the contribution amount, mode of payment, and transaction number for bank transfers. This scrutiny aims to prevent inflated claims for tax deductions.

III. In-depth Reporting on Life Insurance Policies

Taxpayers receiving annual bonuses from life insurance policies now face a new reporting requirement. The ITR forms include a dedicated column for declaring bonus payments received during the financial year. Additionally, individuals must disclose whether money received from high-premium life insurance policies is taxable, bringing clarity to the taxation of life insurance proceeds.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

IV. Comprehensive ESOP Reporting

Employees with stock options from select startups now face a more comprehensive reporting process. Alongside tax amounts and linked years, taxpayers must provide the PAN of the eligible startup and the Department for Promotion of Industry and Internal Trade (DPIIT) registration number to claim ESOP-related tax benefits.

V. Crypto Investments and Online Winnings Disclosure

The growing significance of virtual assets and online earnings prompts detailed disclosures. Taxpayers must now provide quarter-wise breakdowns of their crypto investments under ITR-1, 2, and 4. Additionally, online game winnings are explicitly addressed in Schedule OS, ensuring a thorough examination of income from online games.

VI. Cash Turnover Disclosure in ITR-4

For businesses filing under ITR-4, a new column requires the disclosure of cash turnover or gross receipts. This ensures transparency in financial transactions, with the turnover threshold for presumptive taxation under Section 44AD raised to INR 3 crores.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

VII. Companies Face Enhanced Reporting Requirements

ITR-6, designed for companies, introduces additional reporting requirements, including the Legal Entity Identifier (LEI), MSME registration number, reasons for tax audits under Section 44AB, disclosure of winnings from online games taxable under Section 115BBJ, and details on virtual digital assets.

VIII. Emphasis on Timely Payments to MSMEs

ITR-6 now includes clauses requiring companies to report sums payable to micro or small enterprises, emphasizing the importance of timely payments.

As the ITR filing season approaches, taxpayers need to pay meticulous attention to the changes introduced by the CBDT.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

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Paytm Founder Vijay Shekhar Sharma Meets Sitharaman: Reports

Reports suggest that One97 Communications, the parent company of the payment services firm, faced a significant decline in its stock value following major business restrictions imposed by the Reserve Bank of India (RBI) against Paytm Payments Bank Ltd (PPBL).

Earlier on the same day, Reuters revealed that Sharma and Paytm officials had met with the RBI on February 5 to discuss regulatory concerns.

These meetings come after the RBI instructed Paytm Payments Bank on January 31 to halt new deposits in its accounts and digital wallets from March due to supervisory concerns and non-compliance with rules.

As per Paytm Founder Vijay Shekhar Sharma Meets Sitharaman. Sources mention ongoing discussions to address regulatory concerns and compliance issues with both the RBI and the ministry.

Paytm has requested an extension of the February 29 deadline from the RBI and seeks clarity on the transfer of its license for the wallets business and Fastag digital highway toll payment service, according to sources.

“The RBI listened to Paytm without making any commitments,” said another source.

Responses from Paytm, RBI, and the finance ministry to Reuters’ request for comment are still pending.

As of February 5, Paytm’s shares had dropped by about 42%, causing a $2.5 billion reduction in its market value. Concerns arose about the broader business impact, as Paytm Payments Bank plays a crucial role in the digital payments app, competing with platforms like Walmart’s PhonePe and Google.

As Paytm Founder Vijay Shekhar Sharma Meets Sitharaman. On February 6, the stock hit a record low following a Reuters report on the Enforcement Directorate investigating potential violations of foreign exchange rules by the company.

A Paytm spokesperson refuted the allegations, denying any foreign exchange law violations.

There are speculations that the RBI’s regulatory actions might lead to the cancellation of Paytm’s license, according to a source familiar with the matter from last week.

On Tuesday, Paytm’s shares partially recovered, closing 2.9% higher at 451.15 rupees, after an earlier 8% increase.

Avinash Gorakshakar, head of research at Profitmart Securities, suggested that this share move could be a “dead-cat bounce” amid ongoing negative news affecting the stock.

Bernstein lowered its target share price but maintained an outperform rating, anticipating Paytm’s ability to successfully navigate operational changes required to overcome the imposed restrictions.

Also Read: Paytm Founder Vijay Shekhar Sharma Meets Sitharaman

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